Last year, GGR in Macau fell 3.4% to US$36.55 billion and had been forecast to gain this year prior to the outbreak, which has crippled travel and forced the closure of casinos for 15 days in February. Gaming is the main source of revenue for the Macau economy.
Authorities also now estimate that 2020 will see a deficit of some US$4.86 billion due to the decrease in gaming revenues coupled expenses related to boost the local economy.
The Executive Council has adjusted predictions for 2020 budget revenue to US$13.95 billion, from its prior estimate of US$15.35 billion, with expenses to rise to US$13.85 billion from US$12.57 billion as the government undertakes extraordinary measures to boost the economy.
Among the new steps it is taking, include a six-month exemption from tourism tax for hotels and other establishments linked to the tourism services sector.
The government forecasts are more pessimistic than those so far published by analysts following the gaming sector in Macau, with Bernstein Research for example, predicting a downturn of as much as 40% should the situation not improve until late into the second half of the year.
The key for Macau will be when China lifts its restrictions on movement, in particular a ban on tour groups and the individual visit scheme. There is some optimism these may be lifted, at least in part, by early May.
Source: GMB / AG Brief
